Here’s Another Useful Development To Smooth The Way At Your VSM: IROs Finally Get A Prime Seat At The AGM Table

One of the most interesting - and encouraging - and useful developments with regard to VSMs - has been the fast-growing importance of the corporate Investor Relations staff - both in terms of preparing for the Meeting, and often, in playing a significant on-air role at the Meeting itself. Here’s why we think this is, and why your company should take note:

• IROs tend to be far more tech-savvy, and much more comfortable with “virtual’ events than most legal and corporate-secretarial department staffers are, thanks to the increasing use of the Internet for earnings calls - where a growing number of public companies, by the way, have been allowing ordinary investors to tune in too.
• IROs, as a rule, have the best sense of anyone in the company about what really is - and really should be on the minds of investors of every stripe. Accordingly, they can help hugely in terms of prepping the on-air management team for the kinds of questions to expect…and especially, the toughest ones that might come in.
• A few very savvy IROs seem clearly to have invited questions from investment managers, as a way to ‘get the Q&A ball rolling’ - AND as a way for management to be seen as proactive - and more open and articulate in their answers to Qs that should be top-of-mind where investors of all stripes are concerned. This is exceptionally helpful in allowing Directors, or Senior Managers to answer questions, which makes the Meeting more interesting, and provides for a much nicer “flow.”
• IROs tend to have a lot of practice when it comes to dealing with deeply probing, and sometimes rather hostile questions and comments from investors…and with introducing and handling them, or handing them off smoothly and diplomatically.
• IROs are, we think, the very best people to screen incoming questions - and to tee-them up - and read them, if they have been sent in advance or typed in during the Meeting. Aside from the fact that the Corporate Secretary needs to focus on the  flow of the Meeting as it progresses, many of them, we are sorry to note, tend to evaluate, decide on - and maybe rule out - questions through a strictly “legal lens,” which can often be off-putting to questioners - and to listeners.
• We hasten to add that most Chief Governance Officers and MANY Corporate Secretaries are total pros at all of this, witness their roles in all five of our “Top-Five VSMs.” But quite frankly, the IRO usually comes across as a much more “neutral referee” than someone from the “legal world” – and this job clearly requires undivided attention.